1.Adjusting Entryfor Accrued Fees

At the end of the current year, $11,760 of fees have been earned but have not been billed to clients.

a.Journalize the adjusting entry to record the accrued fees.

b.If thecash basisrather than the accrual basis had been used, would an adjusting entry have been necessary?

2.Adjusting Entriesfor Accrued Salaries

Garcia Realty Co. pays weekly salaries of $41,500 on Friday for a five-day workweek ending on that day.

a.Journalize the necessary adjusting entry at the end of the accounting period assuming that the period ends on Tuesday.

b.Journalize the necessary adjusting entry at the end of the accounting period assuming that the period ends on Wednesday.

3.Adjusting Entryfor Supplies

The balance in the supplies account, before adjustment at the end of the year, is $1,174.

Journalize the adjusting entry required if the amount of supplies on hand at the end of the year is $552.

4.Adjustment forDepreciation

The estimated amount of depreciation on equipment for the current year is $3,310. Journalize theadjusting entryto record the depreciation.

5.DeterminingFixed Asset'sBook Value

The balance in the equipment account is $3,750,000, and the balance in theaccumulated depreciationequipment account is $2,025,000.

a.What is the book value of the equipment?

$

b.Does the balance in the accumulated depreciation account mean that the equipment's loss of value is $2,025,000?

, because depreciation is an allocation of the

of the equipment to the periods benefiting from its use.